Cal. Code Regs. Tit. 16, § 12.5 - Attest Experience Under Business and Professions Code Section 5095
(a) To be
authorized to sign reports on attest engagements pursuant to Business and
Professions Code Section
5095,
an applicant for a California Certified Public Accountant license pursuant to
Business and Professions Code Sections
5087,
or
5093
or holder of an unexpired, valid, active California Certified Public Accountant
license issued pursuant to Business and Professions Code Sections
5087,
5092,
or
5093
shall show to the satisfaction of the Board that they meet the requirements of
this section and Business and Professions Code Section
5095.
(1) Some or all of the experience required by
Section 5095 and this section may be
completed prior to issuance of the California Certified Public Accountant
license. Any experience that would be qualifying for purposes of Section
5095 and this section may also
serve as qualifying experience for purposes of Section
5093. To be qualifying for
purposes of Section
5095 and this section, any
experience obtained after issuance of the California Certified Public
Accountant license must be obtained while the license is held in active
status.
(2) A holder of an active
California Certified Public Accountant license may commence signing reports on
attest engagements upon receipt of notification from the Board that they have
met the requirements of this section and Business and Professions Code Section
5095.
A holder of an inactive California Certified Public Accountant license may
apply under this section, but must convert the license to active status before
commencing to sign reports on attest engagements.
(3) An applicant for the California Certified
Public Accountant license who has met the requirements of this section and
Business and Professions Code Section
5095
may commence signing reports on attest engagements upon license
issuance.
(b) In order to
meet the attest experience requirements of Section
5095 an applicant for or holder of
a California Certified Public Accountant license shall show to the satisfaction
of the Board that the applicant has completed a minimum of 500 hours of attest
experience. This experience shall include all of the following:
(1) Experience in the planning of the audit
including the selection of the procedures to be performed.
(2) Experience in applying a variety of
auditing procedures and techniques to the usual and customary financial
transactions included in financial statements.
(3) Experience in the preparation of working
papers in connection with the various elements of (1) and (2) above.
(4) Experience in the preparation of written
explanations and comments on the work performed and its findings.
(5) Experience in the preparation of and
reporting on full disclosure financial statements as part of the Audit or other
Attest Services. This does not include experience earned through the
performance of preparation engagements in accordance with the provisions of the
Statements on Standards for Accounting and Review Services
(SSARS).
(c) Qualifying
experience may be gained through employment in public accounting, private
industry, or government. Experience acquired in academia is not
qualifying.
(d) In order to be
qualifying, experience obtained pursuant to Section
5095
of the Business and Professions Code must be supervised by a person holding a
valid active license or comparable authority to provide attest services as
specified in subdivision (b) of Business and Professions Code Section
5095.
Supervised experience means that the applicant's supervisor shall have reviewed
and evaluated the applicant's qualifying work, pursuant to subsection (b) on a
routine and recurring basis and shall have authority and oversight over the
applicant.
(1) Experience shall be verified
by the licensee supervising the experience..
(2) Experience may not be supervised by a
licensee who provides public accounting services to the applicant's
employer.
(3)
(A) The verification shall be submitted to
the Board on Form 11A-7 (1/22) for attest accounting experience, which is
hereby incorporated by reference, and shall be signed under penalty of
perjury.
(B) If the applicant is
unable to obtain the verification required in subsection (d)(3)(A), the Board
may approve another form of verification if it contains the information as
required in subsection (d)(3)(A).
(e) In order to demonstrate the completion of
qualifying experience, an applicant for or holder of a California Certified
Public Accountant license may be required to appear before the Qualifications
Committee to present work papers, or other evidence, substantiating that their
experience meets the requirements of Section
5095
of the Business and Professions Code and of subsection (b) of this
section.
(f) The applicant who is
applying with attest experience obtained outside the United States and its
territories must present work papers substantiating that such experience meets
the requirements of subsection (b) and generally accepted auditing standards.
Alternatively, the applicant may acquire a minimum of 500 hours of United
States experience which meets the requirements of Business and Professions Code
Section
5095
and subsection (b).
(g) An
applicant who is applying with experience obtained five (5) or more years prior
to application and who has not passed the Uniform CPA Examination during this
five-year period shall be required to complete 80 hours of continuing
education, which shall meet the following requirements:
(1) The 80 hours must be completed in the two
years preceding approval of the application by the Board.
(2) All 80 hours must meet the requirements
as described in Section
88.
(3) The 80 hours must include, at a minimum,
the following:
(A) 16 hours in financial
accounting standards.
(B) 16 hours
in auditing standards.
(C) 8 hours
in compilation and review.
(D) 8
hours in other comprehensive basis of accounting.
(E) 8 hours in the prevention, detection,
and/or reporting of fraud affecting financial statements.
(4) Certificates of completion must be
submitted to the Board and shall contain a verification certified by a program
provider representative such as a signature or seal. The certificate of
completion must also delineate the subject areas for which the applicant may
claim credit.
(h) The
experience required by Section
5093,
or
5095
of the Business and Professions Code may be obtained in full-time or part-time
employment provided the total experience completed by the applicant is the
equivalent of at least one year of full-time employment for an applicant
qualifying under Section
5093. In evaluating an applicant's
experience, 170 hours of part-time employment shall be considered equivalent to
one month of full-time employment.
Notes
2. Redesignation of portion of subsection (c) as new subsection (c)(1) and new subsection (c)(2) filed 7-19-2004; operative 8-18-2004 (Register 2004, No. 30).
3. Repealer of subsection (g), subsection relettering and amendment of NOTE filed 5-1-2006; operative 5-31-2006 (Register 2006, No. 18).
4. Amendment of subsections (a)-(a)(1) and (f) filed 9-19-2008; operative 10-19-2008 (Register 2008, No. 38).
5. Amendment filed 1-10-2012; operative 2-9-2012 (Register 2012, No. 2).
6. Amendment of subsections (a), (d) and (g) and new subsections (g)(1)-(4) filed 9-10-2013; operative 1-1-2014 (Register 2013, No. 37).
7. Amendment of subsections (g)(1)-(3), repealer of subsection (g)(3)(A), subsection relettering and new subsection (g)(3)(F) filed 8-24-2015; operative 10-1-2015 (Register 2015, No. 35).
8. Change without regulatory effect amending subsection (d)(3)(A) filed 3-1-2018 pursuant to section 100, title 1, California Code of Regulations (Register 2018, No. 9).
9. Amendment of subsections (b)(5) and (d)(3)(A) filed 10-26-2021; operative 1-1-2022 (Register 2021, No. 44).
10. Amendment of subsections (a)-(a)(2), (d)(1), (d)(3)(A)-(B), (e) and (h) filed 2-8-2023; operative 4-1-2023 (Register 2023, No. 6).
Note: Authority cited: Sections 5010 and 5095, Business and Professions Code. Reference: Sections 5023, 5092, 5093 and 5095, Business and Professions Code.
2. Redesignation of portion of subsection (c) as new subsection (c)(1) and new subsection (c)(2) filed 7-19-2004; operative 8-18-2004 (Register 2004, No. 30).
3. Repealer of subsection (g), subsection relettering and amendment of Note filed 5-1-2006; operative 5-31-2006 (Register 2006, No. 18).
4. Amendment of subsections (a)-(a)(1) and (f) filed 9-19-2008; operative 10-19-2008 (Register 2008, No. 38).
5. Amendment filed 1-10-2012; operative 2-9-2012 (Register 2012, No. 2).
6. Amendment of subsections (a), (d) and (g) and new subsections (g)(1)-(4) filed 9-10-2013; operative 1-1-2014 (Register 2013, No. 37).
7. Amendment of subsections (g)(1)-(3), repealer of subsection (g)(3)(A), subsection relettering and new subsection (g)(3)(F) filed 8-24-2015; operative
8. Change without regulatory effect amending subsection (d)(3)(A) filed 3-1-2018 pursuant to section 100, title 1, California Code of Regulations (Register 2018, No. 9).
9. Amendment of subsections (b)(5) and (d)(3)(A) filed 10-26-2021; operative
10. Amendment of subsections (a)-(a)(2), (d)(1), (d)(3)(A)-(B), (e) and (h) filed 2-8-2023; operative
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